There are many reasons why you might need more information about life insurance. Perhaps you are interested in merging policies, or maybe you want to find out if you can obtain a better rate for your insurance. It could also be that you are inexperienced when it comes to insurance and simply want to learn the basics. Read on for information that will help you understand how life insurance policies work and what your options are.
Activities like bungee jumping, scuba diving, or skydiving carry risks that may equal higher life insurance premiums for you. Additionally, some occupations, such as helicopter pilot or a race car driver, can be considered high risk by your insurance provider, and they will increase your premiums accordingly.
Buy your life insurance through your financial advisor, rather than using a broker. When you purchase a policy from an insurance broker, the broker will earn a commission. However, financial advisers receive a flat fee. Therefore, financial advisers do not have the same types of sales incentives brokers do, and have less motivation to steer your decision in one direction or another.
When you are choosing an underwriting company for a life insurance policy, make sure that you pick a company that has a good reputation and is rather large. An inexpensive policy through a firm with a poor reputation will not provide much security if they cannot pay out your policy in the event something happens.
When seeking life insurance quotes online, do not provide too much of your personal information. Often, scammers set up fake life-insurance sites to gain access to people’s personal information. Remember, the only initial information you need to provide for a life insurance quote is your zip code.
Working to become more fit and healthy will help you pay less for life insurance. Very often, healthier people are offered better deals by insurers because their life expectancy is higher.
Buying a larger amount of coverage can help lower your premium rate. A lot of insurance companies will charge less if you are purchasing more coverage, this will save you in the long run if your family needs the money.
Decide how you are going to find and purchase a life insurance policy. Do you want to purchase it with your employer or by yourself? Other options include consulting a fee-only financial advisor, obtaining a policy from a commission-based financial consultant, or buying it directly from an insurance agent.
Whenever possible, pay your premiums annually as opposed to monthly. A good way to save money is paying the annual premium.
Prior to purchasing an insurance policy, you should learn all you can about the available cancellation options. Yet, if you don’t want to change your policy then you can be happy about it and keep it the same. Some insurers will charge you a fee or penalty if you cancel your policy. It is important to know what possible penalties you will have to pay if you choose to cancel your policy.
Make sure your broker is willing to answer difficult questions authoritatively. Make sure to ask about premium guarantees, and ask whether your policy can be renewed or canceled. Asking these specific questions will help you find the best policy.
Be skeptical of hot shot brokers who act like they know everything during your consultation. You want an agent that will be honest and sincere, not one that is willing to say anything just to make a sale.
What amount of life insurance should you buy? The first question you need to ask yourself is whether there is actually a need for life insurance. For most single men and women who do not have kids, the answer is ‘no’. A good rule of thumb is to purchase between 5 and 10 times your annual salary.
To protect your investment, work with a respected, nationwide insurer that offers guarantees on all life insurance policies. Independent research agencies should give the company you deal with a rating of “A”.
Use this article as a guide when you compare different policies, and you will make the right decision. This article should leave you well prepared to get the best coverage for your money and offer peace of mind in providing for the needs of your loved ones.